US Stocks Mixed: Tech Rout, Alphabet's AI Spending, Iran Nuclear Talks, and California Redistricting

Market Performance and Tech Sector

• 📉 The S&P 500 closed down 34 points, and the Nasdaq lost 346 points, reflecting a tech sector rout.
• 📈 The Dow gained 259 points, indicating a mixed market performance.
• 💡 Traders shifted focus from tech giants to broader firms with stronger growth prospects.

Corporate Earnings and Forecasts

• ⚠️ Alphabet shares fell over 7% after announcing significantly higher-than-expected capital expenditures for the year, driven by the artificial intelligence boom.
• 📊 Qualcomm reported first-quarter earnings that exceeded expectations, but its second-quarter forecast fell short, leading to a nearly 9% drop in its shares post-market.

Geopolitical Developments

• ⛽ Oil prices jumped nearly 2% amid reports of potential snags in nuclear talks with Iran.
• 🇺🇸 The US reportedly will not agree to Iran's demands to move talks to Oman or focus solely on nuclear issues.
• 🇨🇳 Secretary of State Marco Rubio stated that any arms deal must include China due to its growing stockpile.
• 🗣️ President Trump had a lengthy phone call with Chinese President Xi Jinping, discussing trade and geopolitical flashpoints like Taiwan.

Domestic Policy and Legal Rulings

• ⚖️ The Supreme Court cleared California to use its new congressional map, which favors Democrats, denying a request to block it on grounds of racial gerrymandering.
• 👮 The Department of Homeland Security will reduce its enforcement presence in Minneapolis by 700 agents, refocusing efforts on more targeted immigration operations.
• 📉 Treasury Secretary Scott Bessent warned that excessive regulation could lead to economic stagnation.

Economic Data Releases

• 📊 The ADP report indicated that US companies added fewer jobs than expected in January, suggesting a slowdown in the labor market.
• 🗓️ Upcoming economic reports include the January employment report on February 11th and the CPI report on February 13th.